BlockBeats messages, October 3: After facing industry opposition, CME Group Inc. decided to put on hold plans to launch a 24/7 crude oil futures contract.
Market participants are concerned that insufficient weekend liquidity could distort WTI oil pricing, and that continuous trading would increase pressure on weekend staffing, commercial hedging, and additional margin requirements outside of business hours.
In a statement issued Friday, CEO Terry Duffy said that after extensive outreach, he found that key market participants generally have reservations, believing that introducing 24/7 energy trading without sufficient due diligence could lead to unforeseeable outcomes and bring additional risks to the market. (Bloomberg)
Market participants are concerned that insufficient weekend liquidity could distort WTI oil pricing, and that continuous trading would increase pressure on weekend staffing, commercial hedging, and additional margin requirements outside of business hours.
In a statement issued Friday, CEO Terry Duffy said that after extensive outreach, he found that key market participants generally have reservations, believing that introducing 24/7 energy trading without sufficient due diligence could lead to unforeseeable outcomes and bring additional risks to the market. (Bloomberg)